Channeling the power of technology

THERE’S little doubt that technology is a dominant force in business, particularly in the financial sector.

But rather than fear the consequences, embracing technology and harnessing its power are the way forward.
While algorithmic trading has been used for decades on the financial markets, the rise of artificial intelligence is increasing its usefulness.
Trading algorithms can now find market efficiencies and identify profitable patterns on their own. And because there’s no human emotion or decision-making, there’s also no possibility of human error.
It means trading can proceed at a pace that would be impossible if a human trader were trying to stay on top of all the necessary information.

Behind the science
Algorithmic trading uses computer programs to follow a set of instructions defined for setting up transactions to generate profits at high speed and frequency.
These rules can be based on market parameters such as price, quantity and strategic timing of transactions. Using defined parameters makes it easy to write a programme that will monitor prices and indicators and place orders when the desired conditions are met.
Having such algorithms in place releases the trader from watching markets and ordering manually.
And that brings a raft of benefits.

What are the benefits?
The increased efficiency of algorithmic trading includes:
• Order placement is swift and accurate
• Transactions happen at the point of the best possible price
• Transaction costs are reduced through the reduction in manpower
• Multiple markets can be analysed at the same time
• Reduced risk of human error
• Outcomes can be analysed and refined

Find out more
The fast-paced digital world is developing all the time.

GetSmarter, leaders in digital education, have teamed up with Said Business School, University of Oxford to deliver a six-week online algorithmic trading programme. Aimed at businesses trading in financial markets, including pension funds, mutual funds, insurance companies, brokerage houses and hedge funds – the programme offers industry-relevant skills, delivered by prominent industry thought-leaders and certified by a one of the world’s leading academic institutions.

• Illustrate methodologies used to develop trading strategies for different types of financial markets
• Understand classical and behavioural finance and how theoretical trading models are applied in practice
• Understand the relationship between emerging technologies and the future of systematic trading
• Assess the efficacy of an algorithmic trading model in a live environment or real-world situation
• Understand systematic trading in historic and current contexts, as well as the key challenges and opportunities faced by the industry

The programme is delivered in six modules over a six-week period and involving some eight to ten hours a week online. Programme Convenor, Professor Nir Vulkan, leads the programme, which takes the form of in-depth notes, videos, discussions and assignments, and there is input from guest experts who share their knowledge of industry-specific applications.

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